I must say that I completely understand why you might be a bit disappointed
I personnally own a Fiio X1 and a Fiio X3 II. My headphones are : Phonak Audeo PFE112 IEM, Hifiman RE400 waterline, Sennheiser CX300 and CX400-II and AKG K242 HD.
I have also tried different headphones thanks to some friends and in some cases shops where headphones are available for testing.
I really think through my tests that the X3-II provides a really good sound. For each headphone I've tried, I could clearly pinpoint its qualities regarding its signature, which means that to obtain a great sound for any user, the coupling between DAC and headphones is necessarily different.
Here are some personal impressions of the X3-II with different headphones, using no EQ whatsoever
Hifiman RE400 (iem): Almost neutral, with a slight layback of medium frequency, making the vocals a little veiled for my taste. However, sound on lows and highs is of excellent quality. Highs sometime induce some sibilance, but this is sporadic
Sennheiser CX-300/400: This is strange how this iems see their signatures emphasized. Bass become extremely heavy, almost hiding all the other frequency.
PFE-112 (iem): famous for their high sound quality at a decent price. With grey filter, the sound is almost perfect. Tight bass, vocals and mediums are not recessed and highs are brights and detailed. However, highs are a little too bright, inducung some fatigue after some time.
Focal Spirit Pro: Excellent neutral sounf with perfectly placed frequencies. Too bad I'm not a fan of "closed" headphones
AKG K-242: This headphone is really excellent for me, when connected to a Marantz amp. However with the X3-II even with High gain, something is amiss. I almost got a perfect sound by attenuating some frequencies trough the EQ
For the moment my favorite coupling is X3-II + PFE-112 (grey filters), though quality of high frequency induces me some weariness after some time. I think I still have to find a better headphone to really be 100% satisfied by my X3-II on a long listening session. However, when my hearing is fine and I'm completely rested, listening to the X3-II+PFE-112 is really a bliss. So, like you, I am somewhat a bit disappointed
I mentioned the X1 before. I must say that my first contact with the X1 was far more satisfying than with the X3. I'll have to take some time to understand why.
So, clearly, I love the X3-II and I really hope I will be able to fight to perfect headphone to use with it as the potential of the DAP is tremendous in my own opinion